In a bourse filing on Apr 1, Indonesian coal producer Geo Energy Resources is proposing to acquire a 50.61% stake in PT Mutiara Hitam Sukses (MHS), which owns PT Harfa Taruna Mandiri (HTM), a coking coal concession holder in Central Kalimantan, Indonesia.
The proposed acquisition will allow Mainboard-listed Geo Energy to tap the premium hard coking coal segment. The company highlights that at a selling price of US$220-US$250 ($280-$320) per tonne, HTM’s coking coal can command cash profit of US$110-US$140 per tonne. With estimated annual production at two million tonnes, the acquisition could potentially generate US$220-US$280 million in annual profit.
Geo Energy says that the proposed transaction, whose exact terms are to be determined, is value accretive and “transformational” as it enables the business to diversify into the “premium” hard coking coal segment while complementing its existing thermal coal energy portfolio.
Due to its high caking index, strong coke strength, and low ash and sulphur content, coking coal is a vital ingredient for steel production. The company notes that “strong” global demand and “limited” global supply means that coking coal enjoys “robust” margins and a price premium in comparison to ordinary thermal coal.
HTM holds an approximately 3,293 hectare coal mining concession with coking coal, which holds a valid Production Operation Mining Licence and is located in Teweh Tengah, North Barito, Central Kalimantan, Indonesia.
Geo Energy executive Chairman and CEO Charles Antonny Melati says, “By advancing our growth trajectory firstly with the development of the road and jetty infrastructure, secondly with the acquisition of the marine logistics business, and now this exciting new chapter into premium coking coal, we are well positioned to grow into a billion-dollar integrated energy group and beyond.
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“The opportunity to secure a majority interest in a promising coking coal concession further enables the Group to diversify into a new coal segment and positions us for long-term value creation.”
In March 2025, the company signed a road use agreement with two other miners and completed the purchase of two marine logistics firms in January 2026.
As at 2.15 pm on April 1, shares in Geo Energy are trading at 53 cents, an increase of 1.5 cents or 2.9% from the previous day’s closing price.
